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Canadian Taxpayers Federation alerts Manitobans to the high tax content in fuel prices

Author: Todd MacKay 2018/05/17

WINNIPEG, MB: As part of its annual Gas Tax Honesty Day, the Canadian Taxpayers Federation (CTF) is alerting Manitobans that the price of fuel will go higher with Premier Brian Pallister’s proposed carbon tax.

“It’s scary to see how fast the numbers go up on the pump when families are filling up their minivans to get away for the long weekend,” said Todd MacKay, the CTF’s Prairie Director. “The last thing Manitobans need is a carbon tax that slips more money out of taxpayers’ pockets, but doesn’t help the environment.”

Here’s a breakdown of $26.74 in tax content governments want a family to pay for filling up the 75.7 L fuel tank on a Dodge Grand Caravan:

  • $10.60 – Provincial Excise Tax (14 cents per litre);
  • $7.57 – Federal Excise Tax (10 cents per litre);
  • $4.54 – Federal Sales Tax (6 cents per litre); and, coming soon,
  • $4.03 – Manitoba Carbon Tax (5.3 cents per litre).

The Manitoba government argues that a carbon tax will help the environment by hitting families with an additional tax that forces them to adjust their behaviours, but many families have limited options.

For example, a family planning to drive their Dodge Grand Caravan from Winnipeg to Gimli to spend Victoria Day at the cottage would get hit with a carbon tax of 89 cents and could choose from the following options to adjust to that increased cost:

  • The family could cancel the trip and stay home to save the 89 cents in carbon-tax costs.
  • The family could trade their Dodge Grand Caravan for a Chrysler Pacifica (the only hybrid minivan on the market) to reduce the carbon tax cost of the trip from 89 cents to 68 cents and save a total of $4.76 on gas, but the Pacifica costs an additional $29,000.
  • The family could pay the 89 cents for the carbon tax and save $3.73 by switching from President’s Choice All-Beef Frankfurters to No Name Original Hot Dogs.

“Premier Pallister would have to raise the carbon tax to economically crippling levels to make many Manitobans stop going to the cottage or force them to buy more expensive hybrids, but his cash grab will add up to cost taxpayers $248 million per year,” said MacKay. “Manitobans already pay more than enough tax when they fill up their gas tanks and Premier Pallister needs to back off on his carbon tax plans.”


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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